After a mixed earnings report, Starbucks rises as it said to reopen its US stores.
Last Tuesday, Starbucks reports showed a 5% fall in revenue to $6 billion. Although it is a decline, it is still above the analysts’ expectations of $5.74 billion. The EPS was 32 cents, higher than the 31 cents expected.
For the American version, the same-stores sales dropped by 3%, while internationally, it dove 32%.
For the Chinese market, the company envisions a significant recovery during the current fiscal year. For the third quarter, same-store sales will probably drop between 25% - 35%. For the last quarter, the fall expected is only 10%, according to market analysts.
After the announcement, Starbucks stock fell 0.8% to $77.50.
But the fall didn't take too long, because yesterday Starbucks went up 3% after the coffee giant announced the reopening of more than 85% of the American stores by the end of this week. But giving the current situation, clients won't be allowed to dine-in. The stores will provide pick-up and deliveries, and also, drive-through. By the end of next month, the company expects over 90% of its stores to be functional with limited working hours.
Starbucks' stock price was down 8% to the date. USA500 lost 4%.
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Sources: marketwatch.com, investors.com
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